A Business For "That's Business" ?

97Percent started as a campaign against some of the shoddy tactics of the online network marketing world, but it soon became clear that we needed to find a business that exhibited as many of the ideal characteristics identified as possible. Because the main criteria is the ability to build a network of consumers, this immediately discounts anything to do with social sites, web sites, training materials and cash gifting. Taking the "lowest common denominator" approach, we find that we need a tangible product that offers value to individuals, so they will happily consume the product each month as the business grows organically below them.

Because some people will have little time available, we also felt that the use of "spillover" or "forced matrix" was a good one, provided it still rewarded the efforts of the people actively building the business.

The end result is a business that some might find boring, but one that is capable of providing the first taste of success for everyone who has been tagged as a "failure" so far.

The key features of the business are:

1. A good range of products, not just one or two products
2. Good pricing making the business accessible to everyone
3. No annual fee or joining fee for distributors
4. A forced matrix that pays the actual sponsor bonuses on the first month purchase

For those who are not clear on what a "forced matrix" is - it basically ensures a well-balanced, solid network structure for your business. By paying first month bonuses, it ensures that those who actually sponsor new people into the business get rewarded for their effort.

This allows those who want to build a large business to do so, but without penalising the majority for not having the time or resources to do likewise. As things grow, many of the "97 percenters" are likely to start emulating some of the efforts of the 3 percenters - but the difference is they are able to do this when the time is right for them, and NOT when an upline sponsor bullies them into it.

This site is proving to be a great place for people to form connections and partnerships - my suggestion here is to take the 97 Percent principles and create a common thread that creates an even stronger bond throughout That's Business.

If you at least like some of what I am saying, please take a peek at http://lhninternational.com/avallach

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Permalink Reply by Gazza on October 6, 2009 at 8:48pm: I just realised - the above post is a lot like most of the biz op mail you see every day - no real details without clicking through. Not my intention....

Full details below:

LHN is "Liberty Health Network" and has a range of health-related products including multi-vitamins, energy drink, skin care and many more.

The health/supplement market is a proven one that fits the recurring revenue model perfectly by the very nature of the products.

LHN has been around for about 8 years and was recently revamped, with a new management team injecting fresh ideas that will help ensure the longevity of the company.

The products are affordable, for example I maintain my monthly autoship by simply ordering 1 month supply of Glucosamine supplements (for my creaky knees) - with the added convenience of being delivered to my door, I pay just $30 plus shipping.

I live in Australia - a lot of other businesses I have seen have crippling shipping rates for non-USA distributors or customers. LHN has a low international shipping fee of $9 (recently increased from $7 but still very good compared to others).

LHN does still actively promote the usual things like weekly training calls - to be honest my view on this is that it's a personal choice. I certainly don't spend all my time urging my downline to "get on the call", that's the way things usually work but WE are building something for the majority not the 3%.

The key thing with a business using the "97 Percent model" is that people need to join the business, purchase product and nothing else. They don't get told to by a load of training materials, they aren't told to spend hours on end learning about mindset and so on.

Within the network there ARE people who take these steps, which helps ensure that new distributors get added into the network, the forced matrix then places these people at a spare location in the overall network.

The person who put in the effort to sponsor this new distributor will get extra commissions on the first month purchase. They continue to benefit from the overall volume commissions. Nobody loses out, everyone gains.

Now there IS a danger that we build a network where everyone just sits there doing nothing - but so far that's not happened. Some people work the business, others intend to at some point, and still more are happy just buying their product.

So we come to the part people often, mistakenly, focus on first; the compensation plan.

As with ALL network marketing companies, distributors get paid a percentage of sales that goes through their part of the organisation. LHN pays out 5% on the first level (up to 4 people), 10% on the next 2 levels, 40% on level 4 and 10% on level 5.

Now this is another point where people get hung up - they worry about all those levels, they look at how many people it takes to fill a matrix and convince themselves it's not possible. For starters, to earn more than $3,000 income per month from this would require a network of just 340 people but even that figure may seem daunting to some.

A key fact is this - with just 2 levels built below you (a total of 20 people) you start to make a small profit, so your business becomes "cost neutral" very early on. With others below you heading towards "break even" your volume will be boosted further, and the network will be a lot more stable than the norm for this industry. Add to that the focus on product - people will continue to purchase anyway, because they want the product - and you get a very stable team situation.

Does the network need 3 percenters? That's a debatable question, and without doubt it can help growth. But for the majority of us, there is a simple plan...

1. Join the business
2. Select a product that suits your needs and choose that as your autoship (some people try different products every month)
3. Tell people about LHN and the different approach of 97 Percent

The thing is, there's no pressure, no hard-sell, no need to learn about autoresponders, list-building, driving traffic, creating web sites and all the other stuff people tell you that you MUST learn. If you do want tools and information to help you build a business, we have a couple of things we recommend that will help you avoid the usual tricks and games (e.g. free systems that wind up with you getting the hard sale on their expensive coaching and education)

Network Marketing is not easy, but it IS simple - find and buy a product you like, then tell people about it.

All the best
Gaz; ▶ Reply to This